Arab Bank problem in New York is settled

The Jordanian minister of Finance Muhammad Abu Hammour said that the case of the Arab Bank in New York, a branch of the Arab Bank in Jordan, is settled. This was after a difference lasted for more than two months between the bank and US Treasury Department.

The Office of the Comptroller of the Currency (OCC) announced that the Federal Branch of Arab Bank, PLC, New York, New York, has consented to an order under which it will contract its activities and convert to an agency office. The order requires the Branch to maintain asset levels and to take various steps to improve its compliance program and internal controls.

The order was precipitated by the OCC’s determination that the branch had internal control weaknesses, particularly with regard to its international funds transfer activities. The order notes that Arab Bank and Branch management cooperated with and facilitated the OCC’s examination and investigation.

Abu Hammour said that the two sides reached an agreement to continue all banking operations in the USA normally with the exception of electronic transfers.

In February, reports said that the Bank board, the largest financial establishment in the Middle East, has taken the first step towards closing its branch in New York where borrowers represent more than 60 major American companies which have deals in the Arab states.

Judicial cases were filed demanding billions of dollars by families of American citizens killed or injured in Israel as a result of acts of violence in which Palestinians were accused.

The bank said by the end of 2004 that its net profit in 2004 increased 40% to reach a standard which is $ 319.3 million in comparison with $ 227.6 million in 2003.